Pennsylvania Oil and Gas Division Order is a legal document issued by the Pennsylvania Department of Environmental Protection (DEP) that outlines the distribution of royalties among the mineral rights owners, commonly referred to as "interest owners," in a specific oil and gas well or lease. This division order is an essential instrument that ensures fair compensation and proper allocation of proceeds from oil and gas production. The Pennsylvania Oil and Gas Division Order includes crucial details such as the names and addresses of the interest owners, their respective ownership percentages, the legal descriptions of the affected property, and the location of the well or lease. It also specifies the governing gas company's information and designates an individual to handle various administrative tasks related to royalty payments. There are different types of Pennsylvania Oil and Gas Division Orders, depending on the specific purpose they serve: 1. Initial Division Orders: These orders are issued at the beginning of oil and gas production operations, once the ownership interests have been determined and agreed upon. They establish the foundation for future royalty payments. 2. Amended Division Orders: These orders come into play when there are changes in the ownership interests due to transfers, acquisitions, or the death of an interest owner. They ensure accurate distribution of royalties by reflecting the updated ownership percentages. 3. Pooling Division Orders: These orders are issued when multiple tract owners agree to pool their mineral interests together for the purpose of drilling and extracting oil and gas resources. Pooling allows for more efficient operations and ensures that all parties involved receive fair compensation based on their contribution. Pennsylvania Oil and Gas Division Orders play a critical role in maintaining transparency and fairness in the oil and gas industry. They serve as binding contracts between the gas company and the interest owners, ensuring proper distribution of royalties and avoiding disputes. It is important for both parties to carefully review and understand the terms and provisions outlined in these division orders to protect their rights and interests in oil and gas production.
Pennsylvania Oil and Gas Division Order
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How to fill out Pennsylvania Oil And Gas Division Order?
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FAQ
The decimal interest is calculated by dividing the number of acres the landowner has in the unit by the total number of acres in the unit, multiplied by the royalty percentage under the gas lease.
A Division order is an instrument that records an owner's interest in a specific well. It should include the name of the well, the well number, interest type, and your decimal interest.
A division order analyst works for a petroleum company and oversees company records. As a division order analyst, you establish, prepare, review, approve, and maintain documents regarding production and land ownership for royalty owners. You generally work as a part of the land department at an oil company.
A division order is a contract between you and the operator (an oil and gas company). Typically, receiving a division order means that the operator is about to drill, or that the operator has already drilled a well and your minerals are producing.
A Division Order is an instrument which sets forth the proportional ownership in produced hydrocarbons, including crude oil, natural gas, and NGL's. Sometimes the Division Order is referred to as a division of interest.
To put it another way the formula is: lessor's acres in unit ÷ total number of acres in unit × lessor's ownership interest × lessor's royalty percentage = lessor's decimal interest.
Mineral rights can be sold in any Pennsylvania county for anything from $500/acre to $5,000+/acre. Isn't that a pretty wide range? The reason for such a range is because the ranges depend on where you are located in Pennsylvania. The cost of your property is heavily influenced by where you are located.
Yes, it can be beneficial to sell your mineral rights for a fair price, even producing rights. First, sellers must be aware of the different stages of the production process. They must also know the value their minerals and royalties command in every development stage.